Albania’s credit ratings remain unchanged at B+/B, outlook stable: S&P

Credit ratings agency Standard & Poor’s said it has affirmed its long- and short-term foreign and local currency sovereign credit ratings on Albania at B+/B, with a stable outlook.

The B + covers the long run performance, while B covers the short-term one.

“The stable outlook balances our views on continuing reforms to the country’s institutional framework, as well as steady economic growth and generally improving public finances, with external and monetary vulnerabilities that remain high.”

“We expect Albania will continue on its path of relatively high economic growth and ongoing fiscal consolidation, which will support a gradual reduction of the country’s high public debt burden,” Standard & Poor’s said in a statement.

Standard & Poor’s also said that they expect the government will move ahead on its structural reform agenda, in part because it aims to join the EU, gradually improving Albania’s institutional effectiveness and predictability.

“The economy will continue to grow at a relatively fast pace, albeit from a low base,” S&P said, adding that as the effects of large-scale investment projects on economic growth fade, domestic demand will become a more significant engine of economic development..

A positive move would also be if fiscal consolidation would improve, especially with regard to revenue collection.

But this time, Standard and Poor’s make another “promise”, saying that de-euroization, or rather a reduction in the use of the euro in the economy, can lead to a rise in rating, which is consequently translated into lower interest rates borrowing for the Albanian government.

SCAN

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